Gold prices saw a decline on Wednesday but remained above the key $2,400 level as investors await the Federal Reserve‘s latest policy meeting minutes for more clues on the timing of the next interest rate cuts.
In Saudi Arabia, 24-carat gold saw a 0.24 percent decline to SAR291.27 per gram and SAR9,059.5 per ounce.
Globally, spot gold saw a 0.35 percent decline to $2,412.65 per ounce, as of 5:38 GMT, after hitting a record high of $2,440.49 at the beginning of the week. Meanwhile, U.S. gold futures saw a 0.40 percent decline to $2,416.10.
Fed meeting minutes
Traders now await the Fed’s latest meeting minutes, which are due at 18:00 GMT. Markets now expect a 64 percent chance of an interest rate cut in September.
Recent consumer price data revealed a decline in inflation in April. However, Federal Reserve officials expressed their caution, stating the need to wait longer to ensure that inflation is back on track to the central bank’s 2 percent target. Lower interest rates in addition to geopolitical tensions support bullion’s appeal as a safe investment, thus supporting gold prices.
Other precious metals
In addition to gold prices, spot silver saw a 0.72 percent decline to $31.73 after hitting an 11-year high on Monday. Platinum rose 0.04 percent to $1,046.88 while palladium declined 0.62 percent to $1,019.61
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